<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934.
For the fiscal year ended December 31, 1994
Commission file number 0-6879
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
CORESTATES SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan
and the address of its principal executive office:
CORESTATES FINANCIAL CORP
Broad and Chestnut Streets
Philadelphia, PA 19107
<PAGE>
REQUIRED INFORMATION
The following financial statements and exhibits are filed as part
of this report:
(a) Item 4 Financial Statements
Report of Independent Auditors
Statement of Net Assets Available
for Plan Benefits, with Fund Information,
December 31, 1994
Statement of Net Assets Available for
Plan Benefits, with Fund Information,
December 31, 1993
Statement of Changes in Net Assets
Available for Plan Benefits, with Fund
Information, Year ended December 31, 1994
Statement of Changes in Net Assets
Available for Plan Benefits, with Fund
Information, Year ended December 31, 1993
Notes to Financial Statements
Supplemental Schedules
(b) EXHIBIT INDEX
(c) Exhibit - Consent of Independent Auditors
SIGNATURE
Financial statement schedules not included with this report have
been omitted because they are not applicable or the required
information is shown in the financial statements or notes
thereto.
<PAGE>
Financial Statements
and Supplemental Schedules
CoreStates Savings Plan
Years ended December 31, 1994 and 1993
with Report of Independent Auditors
<PAGE>
CoreStates Savings Plan
Financial Statements and
Supplemental Schedules
Years ended December 31, 1994 and 1993
Contents
<TABLE>
<S> <C>
Report of Independent Auditors............................................. 1
Audited Financial Statements
Statement of Net Assets Available for Plan Benefits, with Fund
Information, December 31, 1994........................................... 2
Statement of Net Assets Available for Plan Benefits, with
Fund Information, December 31, 1993...................................... 3
Statement of Changes in Net Assets Available for Plan Benefits, with Fund
Information, Year ended December 31, 1994................................ 4
Statement of Changes in Net Assets Available for Plan Benefits, with Fund
Information, Year ended December 31, 1993................................ 5
Notes to Financial Statements.............................................. 6
Supplemental Schedules
Assets Held for Investment Purposes........................................ 15
Reportable Transactions.................................................... 16
</TABLE>
<PAGE>
Report of Independent Auditors
The Board of Directors
CoreStates Financial Corp
We have audited the accompanying statements of net assets available for plan
benefits of the CoreStates Savings Plan as of December 31, 1994 and 1993, and
the related statements of changes in net assets available for plan benefits for
the years then ended. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan at
December 31, 1994 and 1993 and the changes in its net assets available for plan
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment purposes and reportable transactions as of or for
the year ended December 31, 1994, are presented for purposes of complying with
the Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974, and are not a
required part of the basic financial statements. The Fund information in the
statement of net assets available for plan benefits and the statement of changes
in net assets available for plan benefits is presented for purposes of
additional analysis rather than to present the net assets available for plan
benefits and changes in net assets available for plan benefits of each fund. The
supplemental schedules and Fund information have been subjected to the auditing
procedures applied in our audit of the 1994 financial statements and, in our
opinion, are fairly stated in all material respects in relation to the 1994
basic financial statements taken as a whole.
Ernst & Young LLP
May 2, 1995
1
<PAGE>
CoreStates Savings Plan
Statement of Net Assets Available for Plan Benefits, with Fund Information
December 31, 1994
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------------
CoreStates
Financial CoreStates CoreStates CoreStates
Corp Common Equity Bond Equity Index
Total Stock Fund Fund Fund Fund
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at fair value
(cost $220,630,769):
CoreStates Financial Corp
Common Stock $ 99,233,103 $ 99,233,103 $ -- $ -- $ --
Mutual funds 125,943,056 807,645 36,073,737 15,046,882 942,903
Participants' notes receivable 14,167,300 -- -- -- --
-------------------------------------------------------------------------------------------------
Total investments 239,343,459 100,040,748 36,073,737 15,046,882 942,903
Due from broker 3,088,865 -- 1,623,742 511,301 --
Accrued investment income 1,821,014 1,289,076 125,906 86,269 --
Interfund receivable 2,915,764 356,466 -- -- 962,392
Cash and cash equivalents 200,287 4,818 1,333 625 --
-------------------------------------------------------------------------------------------------
Total assets 247,369,389 101,691,108 37,824,718 15,645,077 1,905,295
Liabilities
Interfund payable 2,915,764 92,746 1,489,804 456,399 --
Due to broker 2,502,933 388,851 -- -- 942,903
-------------------------------------------------------------------------------------------------
Total liabilities 5,418,697 481,597 1,489,804 456,399 942,903
-------------------------------------------------------------------------------------------------
Net assets available for
Plan benefits $241,950,692 $101,209,511 $36,334,914 $15,188,678 $ 962,392
=================================================================================================
<CAPTION>
Fund Information
------------------------------------------------------------------------------------------------
CoreStates CoreStates CoreStates Employee
Liquidity Balanced International Loan Distribution
Fund Fund Growth Fund Fund Fund
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at fair value
(cost $220,630,769):
CoreStates Financial Corp
Common Stock $ -- $ -- $ -- $ -- $ --
Mutual funds 41,478,529 30,422,181 1,171,179 -- --
Participants' notes receivable -- -- -- 14,167,300 --
-------------------------------------------------------------------------------------------------
Total investments 41,478,529 30,422,181 1,171,179 14,167,300 --
Due from broker -- 953,822 -- -- --
Accrued investment income -- 319,763 -- -- --
Interfund receivable 126,130 -- 1,194,480 276,296 --
Cash and cash equivalents 191,184 2,327 -- -- --
-------------------------------------------------------------------------------------------------
Total assets 41,795,843 31,698,093 2,365,659 14,443,596 --
Liabilities
Interfund payable 51,864 824,951 -- -- --
Due to broker -- -- 1,171,179 -- --
-------------------------------------------------------------------------------------------------
Total liabilities 51,864 824,951 1,171,179 -- --
-------------------------------------------------------------------------------------------------
Net assets available for
Plan benefits $41,743,979 $30,873,142 $1,194,480 $14,443,596 $ --
=================================================================================================
</TABLE>
See accompanying notes.
2
<PAGE>
CoreStates Savings Plan
Statement of Net Assets Available for Plan Benefits, with Fund Information
December 31, 1993
<TABLE>
<CAPTION>
Fund Information
---------------------------------------------------------------------------
CoreStates
Financial CoreStates CoreStates CoreStates Corestates
Corp Common Equity Bond Liquidity Balanced
Total Stock Fund Fund Fund Fund Fund
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments, at fair value
(cost $194,809,305):
CoreStates Financial Corp
Common Stock $ 91,223,511 $91,223,511 $ -- $ -- $ -- $ --
Mutual funds 132,365,179 537,701 48,723,055 14,922,139 39,225,144 28,957,140
Participants' notes receivable 11,027,409 -- -- -- -- --
--------------------------------------------------------------------------------------------
Total investments 234,616,099 91,761,212 48,723,055 14,922,139 39,225,144 28,957,140
Due from broker 330,230 137,806 -- 192,424 -- --
Accrued investment income 1,373,817 1,041,321 47,244 52,313 -- 232,939
Interfund receivable 1,893,614 -- 4,042 -- -- 3,162
Cash and cash equivalents (501,846) 166,709 255,935 (236,075) (794,109) 105,694
Other assets 2,937 1,500 -- 141 -- 1,296
--------------------------------------------------------------------------------------------
Total assets 237,714,851 93,108,548 49,030,276 14,930,942 38,431,035 29,300,231
Liabilities
Amounts payable to withdrawing
participants 1,284,088 -- -- -- -- --
Interfund payable 1,893,614 567,063 318,792 95,988 727,065 184,706
Due to broker 694,598 -- 405,706 -- -- 288,892
--------------------------------------------------------------------------------------------
Total liabilities 3,872,300 567,063 724,498 95,988 727,065 473,598
--------------------------------------------------------------------------------------------
Net assets available for
Plan benefits $233,842,551 $92,541,485 $48,305,778 $14,834,954 $37,703,970 $28,826,633
============================================================================================
<CAPTION>
Fund Information
----------------------------
Employee
Loan Distribution
Fund Fund
----------------------------
<S> <C> <C>
Assets
Investments, at fair value
(cost $194,809,305):
CoreStates Financial Corp $ -- $ --
Common Stock
Mutual funds -- --
Participants' notes receivable 11,027,409 --
----------------------------
Total investments 11,027,409 --
Due from broker -- --
Accrued investment income -- --
Interfund receivable 602,322 1,284,088
Cash and cash equivalents -- --
Other assets -- --
----------------------------
Total assets 11,629,731 1,284,088
Liabilities
Amounts payable to withdrawing
participants -- 1,284,088
Interfund payable --
Due to broker -- --
----------------------------
Total liabilities 1,284,088
----------------------------
Net assets available for
Plan benefits $11,629,731 $ --
============================
</TABLE>
See accompanying notes.
3
<PAGE>
CoreStates Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits, with Fund
Information
Year ended December 31, 1994
<TABLE>
<CAPTION>
Fund Information
---------------------------------------------------------------
CoreStates
Financial CoreStates CoreStates CoreStates
Corp Common Equity Bond Equity Index
Total Stock Fund Fund Fund Fund
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Contributions:
Employer $ 13,083,973 $ 4,578,950 $ 2,956,576 $ 1,056,618 $ --
Employee 17,701,823 5,989,886 4,217,262 1,428,333 --
----------------------------------------------------------------------------------
Total contributions 30,785,796 10,568,836 7,173,838 2,484,951 --
Investment income:
Interest 651,432 842 -- -- --
Dividends on CoreStates
Financial Corp Common
stock 4,528,158 4,528,158 -- --
Dividend income 2,843,076 25,710 191,789 779,217 --
Distribution of common
trust funds' income 1,244,182 -- 216,691 2,854 --
----------------------------------------------------------------------------------
Total investment income 9,266,848 4,554,710 408,480 782,071 --
Net realized and
unrealized depreciation
on investments (18,966,107) (1,907,487) (14,146,136) (850,059) --
Participants' withdrawals (27,707,738) (2,926,298) -- -- --
Transfer from Constellation
Savings Plan 6,640,533 1,869,114 767,423 511,511 --
Transfer from Inter-
Community Savings Plan 145,672 64,837 28,232 9,288 --
Participants' interfund
transfers -- (3,581,357) (6,196,812) (2,587,860) 962,392
Other (disbursements)
receipts 7,943,137 25,671 (5,889) 3,822 --
----------------------------------------------------------------------------------
Increase (decrease) in net
assets available for Plan
benefits during the year 8,108,141 8,668,026 (11,970,864) 353,724 962,392
Net assets available for
Plan benefits at
beginning of year 233,842,551 92,541,485 48,305,778 14,834,954 --
----------------------------------------------------------------------------------
Net assets available for
Plan benefits at end of
year $241,950,692 $101,209,511 $ 36,334,914 $15,188,678 $962,392
==================================================================================
<CAPTION>
Fund Information
--------------------------------------------------------------------------------------
CoreStates CoreStates CoreStates Employeees
Liquidity Balanced International Loan Distribution
Fund Fund Growth Fund Fund Fund
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Contributions:
Employer $ 2,075,068 $ 2,416,761 $ -- $ -- $ --
Employee 2,662,390 3,403,952 -- -- --
--------------------------------------------------------------------------------------
Total contributions 4,737,458 5,820,713 -- -- --
Investment income:
Interest 425 -- -- 650,165 --
Dividends on CoreStates
Financial Corp Common
stock -- -- -- -- --
Dividend income 1,596,803 249,557 -- -- --
Distribution of
common trust funds'
income -- 1,024,637 -- -- --
--------------------------------------------------------------------------------------
Total investment income 1,597,228 1,274,194 -- 650,165 --
Net realized and
unrealized depreciation
on investments -- (2,062,425) -- -- --
Participants' withdrawals -- -- -- (8,271,588) (16,509,852)
Transfer from Constellation
Savings Plan 2,402,828 1,089,657 -- -- --
Transfer from Inter-
Community Savings Plan 22,257 21,058 -- -- --
Participants' interfund
transfers (4,722,783) (4,090,496) 1,194,480 2,500,967 16,521,469
Other (disbursements)
receipts 3,021 (6,192) -- 7,934,321 (11,617)
--------------------------------------------------------------------------------------
Increase (decrease) in net
assets available for Plan
benefits during the year 4,040,009 2,046,509 1,194,480 2,813,865 --
Net assets available for
Plan benefits at
beginning of year 37,703,970 28,826,633 -- 11,629,731 --
--------------------------------------------------------------------------------------
Net assets available for
Plan benefits at end of
year $ 41,743,979 $ 30,873,142 $ 1,194,480 $14,443,596 $ --
=====================================================================================
</TABLE>
See accompanying notes.
4
<PAGE>
CoreStates Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits, with Fund
Information
Year ended December 31, 1993
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------------------------------------------
CoreStates
Financial CoreStates CoreStates CoreStates Corestates
Corp Common Equity Bond Liquidity Balanced
Total Stock Fund Fund Fund Fund Fund
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employer $ 15,656,831 $ 7,410,690 $ 2,727,320 $ 1,042,802 $ 2,256,484 $ 2,219,535
Employee 16,730,671 5,599,896 3,827,976 1,411,728 2,908,762 2,982,309
--------------------------------------------------------------------------------------------
Total contributions 32,387,502 13,010,586 6,555,296 2,454,530 5,165,246 5,201,844
Investment income:
Interest 585,174 3,155 2,217 2,628 7,813 2,131
Dividends on CoreStates
Financial Corp common
stock 3,744,380 3,744,380 -- -- -- --
Dividend income 2,969,940 22,781 224,034 708,157 1,172,174 842,483
Distribution of common
trust funds' income 23,430 -- -- 23,147 283 --
--------------------------------------------------------------------------------------------
Total investment income 7,322,924 3,770,316 226,251 733,932 1,180,270 844,614
Net realized and
unrealized appreciation
(depreciation) on
investments 5,653,672 (8,511,669) 12,776,086 (53,286) -- 1,442,541
Participants' withdrawals (18,179,233) (721,757) -- (645) -- --
Transfer from First
Peoples Savings Plan 5,473,568 1,072,486 474,175 828,578 2,590,316 508,013
Participants' interfund
transfers -- (1,122,471) (1,180,846) (1,463,142) (9,325,544) 21,571
Other (disbursements)
receipts 6,795,124 (1,584) (6,558) (691) (3,512) 2,381
--------------------------------------------------------------------------------------------
Increase (decrease) in net
assets available for Plan
benefits during the year 39,453,557 7,495,907 18,844,404 2,499,276 (393,224) 8,020,964
Net assets available for
Plan benefits at
beginning of year 194,388,994 85,045,578 29,461,374 12,335,678 38,097,194 20,805,669
--------------------------------------------------------------------------------------------
Net assets available for
Plan benefits at end of
year $233,842,551 $92,541,485 $48,305,778 $14,834,954 $37,703,970 $28,826,633
============================================================================================
<CAPTION>
Fund Information
---------------------------------
Employee
Loan Distribution
Fund Fund
---------------------------------
<S> <C> <C>
Contributions:
Employer $ -- $ --
Employee -- --
---------------------------------
Total contributions -- --
Investment income:
Interest 567,230 --
Dividends on CoreStates
Financial Corp common
stock -- --
Dividend income 311 --
Distribution of common
trust funds' income -- --
---------------------------------
Total investment income 567,541 --
Net realized and unrealized
appreciation (depreciation)
on investments -- --
Participants' withdrawals (7,076,477) (10,380,354)
Transfer from First
Peoples Savings Plan -- --
Participants' interfund
transfers 2,688,977 10,381,455
Other (disbursements)
receipts 6,806,189 (1,101)
---------------------------------
Increase (decrease) in net
assets available for Plan
benefits during the year 2,986,230 --
Net assets available for
Plan benefits at
beginning of year 8,643,501 --
---------------------------------
Net assets available for
Plan benefits at end of
year $11,629,731 $ --
=================================
</TABLE>
See accompanying notes.
5
<PAGE>
CoreStates Savings Plan
Notes to Financial Statements
Years ended December 31, 1994 and 1993
1. Summary of Significant Accounting Policies
Basis of Investments
Investments are stated at fair value (Note 4). Cost of investments sold is
determined on an average historical cost basis. Loans are carried at unpaid
principal balance.
Income Tax Status
The Plan has received a tax determination letter from the Internal Revenue
Service stating that the Plan qualifies under the Internal Revenue Code and is,
therefore, not subject to tax under present income tax law. The Plan has
subsequently been amended, but Management believes that the Plan, as amended, is
exempt from federal income taxes.
2. Description of the Plan
The following brief description of the Plan is provided for general information
only. Participants should refer to the Plan agreement for more complete
information.
A. General
As amended, the Plan is a defined contribution, profit-sharing plan which
covers qualified employees of CoreStates Financial Corp and certain
affiliated companies ("the Company"). The Plan is subject to the provisions
of the Employee Retirement Income Security Act of 1974 (ERISA).
B. Plan Termination
While the Company has not expressed any intent to discontinue its
contributions, it is free to do so at any time, subject to the provisions of
ERISA. Upon complete discontinuance of contributions by the Company, or
termination or partial termination of the Plan, the rights of all affected
participants to benefits accrued to that date shall become fully vested,
except to the extent that law or regulations may preclude such vesting in
order to prevent discrimination in favor of highly compensated employees.
6
<PAGE>
CoreState Savings Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
B. Plan Termination (continued)
Upon final or partial termination of the Plan, and after payment of all
expenses not paid by the Company and proportional adjustment of the separate
accounts of participants affected thereby to reflect such expenses and a
reallocation of profits and losses to the date of such termination or
partial termination, affected participants and beneficiaries shall be
entitled to distribution of their accrued benefits.
C. Contributions
Employee
The Plan provides for employee contributions on either an after-tax basis or
a before-tax basis (up to $9,240 in 1994 and $8,994 in 1993) equal to any
whole percentage of the participant's compensation up to 10% (5% is
considered a basic contribution and amounts in excess of 5% are considered
an optional contribution) for each payroll period.
Employer
The Company makes a matching contribution to the Plan on behalf of each
participant who has made basic contributions (up to 5%) for each payroll
period. The Employer contribution allocated to the participant's account for
a given payroll period shall be as follows:
<TABLE>
<CAPTION>
Participant's Years Employer
of Vesting Service Matching Contribution
--------------------------------------------------------------
<S> <C>
Fewer than 2 years 50%
At least 2 years but fewer than 3 years 75%
3 years or more 100%
</TABLE>
In 1993, the Company made a special qualified non-elective contribution to
the CoreStates Common Stock Fund within the Plan for all eligible Plan
participants who were defined as non-highly compensated employees. The
contribution was made in an amount sufficient to purchase five shares of
stock for each recipient, and totaled $3,091,905 which is reported as an
Employer contribution on the Statement of Changes in Net Assets Available
for 1993.
7
<PAGE>
CoreState Savings Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
D. Vesting
Employee contributions, rollovers, and qualified voluntary employee
contribution accounts, as affected by investment results, are fully vested
at all times. Employer contributions, also as affected by investment
results, are fully vested upon termination of employment because of normal
retirement, death, or if the participant incurs a disability.
In all other cases, Employer contributions, other than qualified non-
elective contributions, as affected by investment results, vest as follows:
<TABLE>
<CAPTION>
Years of Vesting Service Percent Vested
------------------------------------------------------
<S> <C>
Fewer than 2 years 0%
At least 2 years but fewer than 3 years 50%
3 years or more 100%
</TABLE>
Upon the participant's employment termination date, that portion of the
Employer's contributions applicable to such participant which is not vested
is forfeited and applied to reduce future Employer contributions.
Unvested portions are restored to participant's accounts if the participant
is reemployed by the Company before incurring a five-year break in service.
E. Expenses
The expenses of the Plan, including but not limited to legal and accounting
fees, shall be paid by the Plan unless paid by the Company.
F. Payment of Benefits
Upon termination of employment, a participant may receive vested benefits as
a lump-sum payment or if the participant's vested accrued benefit exceeds
$3,500, the participant may elect to receive equal annual installments over
a period not exceeding ten years. Also, a participant may elect to receive a
distribution from the accounts invested in the CoreStates Common Stock Fund
in the form of CoreStates common stock.
8
<PAGE>
CoreState Savings Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
G. Loans
Active participants, terminated participants and beneficiaries with accrued
benefits under the Plan, may borrow funds from the Plan subject to
requirements of the Plan. Loans advanced against employees' vested benefits
in the Plan are deducted from the amount of any benefits which are payable
to the participant upon termination.
H. Withdrawals
A participant shall be permitted to withdraw all or a portion of the amount
in the participant's after-tax contribution account subject to the
restrictions or penalties as set forth in the Plan.
Participants who apply for a hardship withdrawal under IRS regulations, or
who cease to be a participant in the Plan, may receive their deferred
account balance in full. The amount payable to withdrawing participants at
December 31, 1994 is $4,880,000.
3. Investment Programs
CoreStates Bank, N.A. (CBK) serves as Trustee for the Plan. Five funds, as of
December 31, 1994, are maintained under the Plan for accumulation and investment
of the participants' account. The funds are as follows:
A. CoreStates Financial Corp Common Stock Fund invests primarily in common
stock of CoreStates Financial Corp, the parent company of CBK;
B. CoreStates Equity Fund invests principally in the CoreFund Growth Equity
Reserve Rebate, a mutual fund of CoreFund, Inc. for which CoreStates
Financial Corp provides investment advisory and custodial services;
9
<PAGE>
CoreState Savings Plan
Notes to Financial Statements (continued)
3. Investment Programs
C. CoreStates Bond Fund invests principally in the CoreFund Intermediate Bond
Fund Reserve Rebate, a mutual fund of CoreFund, Inc. for which CoreStates
Financial Corp provides investment advisory and custodial services;
D. CoreStates Liquidity Fund invests in the CoreFund Cash Reserve Fund Rebate,
a mutual fund of CoreFund, Inc. for which CoreStates Financial Corp provides
investment advisory and custodial services;
E. CoreStates Balanced Fund invests principally in the CoreFund Balanced Rebate
Fund Series A, a mutual fund of CoreFund, Inc. for which CoreStates
Financial Corp provides investment advisory and custodial services;
As of January 1, 1995, two additional funds will be available:
F. CoreStates Equity Index Fund invests principally in the CoreFund Equity
Index Fund, a mutual fund of CoreFund, Inc. for which CoreStates Financial
Corp provides investment advisory and custodial services;
G. CoreStates International Growth Fund invests principally in the CoreFund
International Growth Fund, a mutual fund of CoreFund, Inc. for which
CoreStates Financial Corp provides investment, advisory and custodial
services.
4. Investments
Investments are comprised of the following:
<TABLE>
<CAPTION>
December 31, 1994
------------------------------
Shares Average Fair
or Units Cost Value
--------------------------------------------
<S> <C> <C> <C>
CoreStates Financial Corp
Common Stock Fund:
Common Stock 3,816,159 shares $78,547,410 $ 99,233,103
CoreFund Cash Reserve
Rebate 807,645 units 807,645 807,645
--------------------------
79,355,055 100,040,748
--------------------------
</TABLE>
10
<PAGE>
CoreState Savings Plan
Notes to Financial Statements (continued)
<TABLE>
<CAPTION>
4. Investments (continued)
December 31, 1994
-------------------------------
Shares Average Fair
or Units Cost Value
-----------------------------------------------
<S> <C> <C> <C>
CoreStates Equity Fund:
CoreFund Cash Reserve Rebate 177,639 units $ 177,639 $ 177,639
CoreFund Growth Equity
Reserve Rebate+ 3,786,508 units 36,469,348 35,896,098
---------------------------
36,646,987 36,073,737
---------------------------
CoreStates Bond Fund:
CoreFund Cash Reserve Rebate 128,355 units 128,355 128,355
CoreFund Intermediate Bond Fund
Rebate+ 1,572,026 units 15,583,571 14,918,527
---------------------------
15,711,926 15,046,882
---------------------------
CoreStates Liquidity Fund:
CoreFund Cash Reserve Rebate+ 41,478,529 units 41,478,529 41,478,529
---------------------------
41,478,529 41,478,529
---------------------------
CoreStates Balanced Fund:
CoreFund Cash Reserve Rebate 124,552 units 124,552 124,552
CoreFund Balanced Rebate Fund
Series A+ 3,066,561 units 31,032,338 30,297,629
---------------------------
31,156,890 30,422,181
---------------------------
CoreStates Equity Index Fund:
CoreFund Equity Index Fund A 46,887 units 942,903 942,903
---------------------------
942,903 942,903
CoreStates International Growth
Fund:
CoreFund International Growth
Fund A 97,113 units 1,171,179 1,171,179
---------------------------
1,171,179 1,171,179
Employee Loan Fund:
Participant Notes Receivable, with
interest rates ranging from
5.5% to 11%+ 14,167,300 14,167,300
---------------------------
Total investments $220,630,769 $239,343,459
===========================
</TABLE>
11
<PAGE>
CoreState Savings Plan
Notes to Financial Statements (continued)
<TABLE>
<CAPTION>
4. Investments (continued)
December 31, 1993
--------------------------------
Shares Average Fair
or Units Cost Value
------------------------------------------------
<S> <C> <C> <C>
CoreStates Financial Corp
Common Stock Fund:
Common Stock+ 3,491,484 shares $ 66,622,378 $ 91,223,511
CoreFund Cash Reserve
Rebate 537,701 units 537,701 537,701
---------------------------
67,160,079 91,761,212
---------------------------
CoreStates Equity Fund:
CoreFund Cash Reserve Rebate 469,105 units 469,105 469,105
CoreFund Growth Equity
Reserve Rebate+ 3,591,559 units 34,555,790 48,253,950
---------------------------
35,024,895 48,723,055
---------------------------
CoreStates Bond Fund:
CoreFund Cash Reserve Rebate 133,662 units 133,662 133,662
CoreFund Intermediate Bond
Fund Rebate+ 1,469,872 units 14,666,573 14,788,477
---------------------------
14,800,235 14,922,139
---------------------------
CoreStates Liquidity Fund:
CoreFund Cash Reserve Rebate+ 39,225,144 units 39,225,144 39,225,144
---------------------------
39,225,144 39,225,144
---------------------------
CoreStates Balanced Fund:
CoreFund Cash Reserve Rebate 369,438 units 369,438 369,438
CoreFund Balanced Rebate
Fund Series A+ 2,689,343 units 27,202,105 28,587,702
---------------------------
27,571,543 28,957,140
---------------------------
Employee Loan Fund:
Participant Notes Receivable,
with interest rates ranging
from 5.5% to 11% 11,027,409 11,027,409
---------------------------
Total investments $194,809,305 $234,616,099
===========================
</TABLE>
+--Represents greater than 5 percent of net assets available for Plan benefits
12
<PAGE>
CoreState Savings Plan
Notes to Financial Statements (continued)
4. Investments (continued)
Fair values are determined: (1) for CoreStates Financial Corp Common Stock on
the basis of the reported bid price in the over-the-counter securities market as
reported by NASDAQ; (2) short-term liquid assets are valued at amortized cost
which approximates fair value; and (3) CoreFund mutual funds are valued at net
asset value at the close of business on December 31, 1994.
The Plan's investments are held by a bank-administered trust fund. During 1994
and 1993, the Plan's investments (including investments bought, sold, as well as
held during the year) (depreciated) appreciated in fair value by $(18,966,107)
and $5,653,672 as follows:
<TABLE>
<CAPTION>
Net Appreciation
(Depreciation) in
Fair Value Fair Value at
During the Year End of Year
-----------------------------------
<S> <C> <C>
Year ended December 31, 1994:
Fair value as determined by quoted
market prices:
Common stock:
Employer company $ (1,907,487) $ 99,233,103
Mutual funds (17,058,620) 125,953,056
Participant notes receivable -- 14,167,300
----------------------------------
$(18,966,107) $239,353,459
==================================
Year ended December 31, 1993:
Fair value as determined by quoted
market prices:
Common stock:
Employer company $ (8,511,669) $ 91,223,511
Mutual funds 14,165,341 132,365,179
Participant notes receivable -- 11,027,409
----------------------------------
$ 5,653,672 $234,616,099
==================================
</TABLE>
13
<PAGE>
CoreState Savings Plan
Notes to Financial Statements (continued)
5. Subsequent Events
As the result of the June 27, 1994 acquisition by CoreStates Financial Corp of
Independence Bancorp, Inc., (Independence), participants became eligible for
coverage under the CoreStates Savings Plan effective September 1, 1994. The
remaining net assets (approximately $13.4 million as of December 31, 1994) of
the Independence Savings Plan were transferred to the CoreStates Savings Plan in
the first quarter of 1995. Eligible participants of the Independence Capital
Accumulation Plan became eligible for coverage under the CoreStates Savings Plan
effective January 1, 1995. All remaining assets (approximately $25.6 million as
of December 31, 1994) of the Independence Capital Accumulation Plan will be
transferred into the CoreStates Savings Plan during 1995.
Germantown Savings Bank (GSB) employees became eligible for coverage under the
CoreStates Savings Plan effective January 1, 1995 due to the December 2, 1994
acquisition of Germantown Savings Bank by CoreStates Financial Corp.
14
<PAGE>
CoreStates Savings Plan
Assets Held for Investment Purposes
December 31, 1994
<TABLE>
<CAPTION>
Description Shares or Units Average Cost Fair Value
----------- --------------- ------------ ----------
<S> <C> <C> <C>
CoreStates Financial Corp*
Common Stock 3,816,159 shares $ 78,547,410 $ 99,233,103
CoreFund* Balanced Rebate Fund
Series A 3,066,561 units 31,032,338 30,297,629
CoreFund* Cash Reserve Rebate 42,716,720 units 42,716,720 42,716,720
CoreFund* Growth Equity
Reserve Rebate 3,786,508 units 36,469,348 35,896,098
CoreFund* Intermediate Bond
Fund Rebate 1,572,026 units 15,583,571 14,918,527
CoreFund* Equity Index Fund A 46,887 units 942,903 942,903
CoreFund* International Growth
Fund A 97,113 units 1,171,179 1,171,179
Participant Notes Receivable, with
interest rates ranging from 5.5%
to 11.0% -- 14,167,300
---------------------------
Total investments $206,463,469 $239,343,459
===========================
</TABLE>
*--Indicates a party-in-interest to the Plan.
15
<PAGE>
CoreStates Savings Plan
Reportable Transactions
December 31, 1994
<TABLE>
<CAPTION>
(A) (A)
Identity of Description Purchase Selling Gain
Parties Involved of Assets Price Price (Loss)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category I--A single transaction in excess of 5% of plan assets
- ---------------------------------------------------------------
CoreFund Cash Reserve Rebate Purchased 3,540,711 units at 100% of par value
on July 5, 1994 $3,540,711
CoreFund Cash Reserve Rebate Purchased 1,576,972 units at 100% of par value
on March 2, 1994 1,576,972
CoreFund Cash Reserve Rebate Purchased 787,435 units at 100% of par value
on March 2, 1994 787,435
Category II--A series of transactions (other than security transactions)
- ------------------------------------------------------------------------
with the same person aggregating in excess 5% of plan assets
- --------------------------------------------------------------
None.
</TABLE>
16
<PAGE>
CoreStates Savings Plan
Reportable Transactions (continued)
December 31, 1994
<TABLE>
<CAPTION>
(A) (A)
Identity of Description Purchase Selling Gain
Parties Involved of Assets Price Price (Loss)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category III--A series of transactions in a security issue aggregating
- ----------------------------------------------------------------------
in excess of 5% of plan assets
------------------------------
CoreFund Cash Reserve Rebate Purchased 47,795,449 units in 389 transactions;
sold 45,813,779 units in 295 transactions $47,795,449 $45,813,779 $ -
CoreFund Balanced Rebate Fund Purchased 829,348 units in 38 transactions; sold
Series A 452,130 units in 11 transactions 8,410,506 4,638,154 57,881
CoreFund Growth Equity Reserve Purchased 859,724 units in 35 transactions; sold
Rebate 664,776 units in 14 transactions 8,321,750 6,533,465 125,274
CoreFund Intermediate Bond Fund Purchased 388,947 units in 53 transactions; sold
Rebate 286,793 units in 13 transactions 3,771,402 2,791,293 (63,111)
CoreStates Financial Corp Purchased 742,377 shares in 46 transactions;
sold 311,011 shares in 30 transactions 19,791,742 8,180,559 2,007,953
CoreStates Financial Corp Received 55,130 shares in a transfer from the
Savings and Investment Plan of Constellation
Bancorp 2,221,425 - -
</TABLE>
17
<PAGE>
CoreStates Savings Plan
Reportable Transactions (continued)
December 31, 1994
<TABLE>
<CAPTION>
(A) (A)
Identity of Description Purchase Selling Gain
Parties Involved of Assets Price Price (Loss)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category IV--Any single or series of transctions with a person involving securities
- -----------------------------------------------------------------------------------
in excess of 5% of plan assets
------------------------------
None.
</TABLE>
(A) Commissions and fees related to purchases and sales of investments are
included in the cost of the investment or the proceeds from the sale and
are not separately identified.
18
<PAGE>
EXHIBIT INDEX
Consent of Independent Auditors
<PAGE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-8 No. 33-32934) pertaining to the CoreStates Savings Plan of CoreStates
Financial Corporation of our report dated May 2, 1995, with respect to the
financial statements and schedules of the CoreStates Savings Plan included
in this Annual Report (Form 11-K) for the year ended December 31, 1994.
Ernst & Young LLP
Philadelphia, Pennsylvania
June 26, 1995
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
plan administrator has duly caused this annual report to be signed on its behalf
by the undersigned hereunto duly authorized.
CORESTATES SAVINGS PLAN
Date: 27 June, 1995 By /s/ S. W. Holt
-------- -------------------------------------
S. W. Holt
for the CoreStates Benefit Plans
Committee
